Conventional contactless payment systems have gained some acceptance by retailers and are becoming increasingly popular among consumers. In contactless payment systems, consumers can use a payment card or other mobile device (e.g., a cell phone) that securely communicates consumer account information via a radio frequency communication link to a merchant's payment terminal. The payment terminal then communicates with an appropriate financial network or other back-end processing system to authorize the transaction. Once authorized, the consumer and/or merchant completes the transaction.
Next generation cell phones and other mobile devices are being equipped with near field communication (NFC) technology to allow them to interface with contactless payment cards, contactless payment terminals, and other NFC equipped cell phones. However, significant security issues exist today for use of these mobile devices with the contactless payment terminals and payment cards.